* Nigerian rebels say blow up Shell wellhead in Niger Delta

Oil rose towards $71 a barrel on Friday after Nigerian rebels said they blew up a wellhead in a Royal Dutch Shell oilfield and as equity markets rallied on perceptions the global recession was easing.

The fate of the global equity market rally now comes down to China. Will it continue to stockpile hard assets? Will the data points continue to soothe and impress? Much is at stake either way…  

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Another sure sign that inflation is a clear and present danger is the recent rise in oil prices. Wednesday, crude oil set its 2009 high at $54.83 in New York intraday trading.

Is it the prospect of global recovery or the prospect of inflation that’s driving oil prices higher? Adam Lass says you don’t have to choose – the opportunity for profit is there either way.

While history has shown us that there shouldn’t be much correlation between the stock and commodity markets, the current inter-connectedness between the two at the moment is still very evident. We’re still seeing large, intra-day and intra-week price swings, most of it coming on the heels of stock market moves. 

Oil prices have fallen 70% since hitting a record $147.27 a barrel in July, which means in just five months, crude has given up all the price gains it made in the past four years.

Stuck for Christmas gift ideas? Why not try a barrel of oil? You can get one for around US$40 these days. That’s 54% lower than this time last year and 72% below the price on July 14th ($145.16).

High gas prices have forced Exxon Mobil Corp. (XOM) – the world’s largest oil company – from the retail gasoline business, the company said late Thursday afternoon.

Petroleo Brasileiro SA and the UK’s BG Group have made a second major oil find in Brazil’s Santos Basin.

The Guara exploration well struck oil in the BM-S-9 concession area – the same block as September’s Carioca discovery, which could contain as many as 33 billion barrels of oil.

“There are those who will tell you that oil is a cyclical business and a global fungible commodity,” says Christian DeHaemer in Taipan Daily.